In advance: 3QTR24 <U/O> Matrix via Applied Indexation is currently available in multi-sheet format.
<U/O> Matrix via Applied Indexation illustrates adaptive applications of peer group analytics and valuation, establishing breadth for institutional investors to identify empirical themes of performance dispersion and mean reversion, and prospects for incremental/decremental outperformance (absolute, bifurcated).
In this context, <U/O> Matrix via Applied Indexation methodology presents data analytics on a relative portfolio-weighted basis to dimension competitive market information and demonstrate interrelationships among benchmark index/proxy component members across economic sectors/asset classes/geography based on corporate business segment operations.
Iterating from standardized benchmark taxonomy and characteristics, derivative quantitative metrics provide an opportunity to lever (or deconstruct) component member attributes and define protocols for index-plus/thematic/megatrend/niche/systematic portfolio strategies (cross-sector/multi-asset/multi-factor).
Featured Clean Energy thematic is derived from a combined Renewables/Diversified Industrials/Technology sector-themed overlay within Invesco’s publicly traded Clean Energy subindustry benchmark proxy ETF (ticker PBW), utilizing the modularity of business segment operations embedded within company revenue lines to generate effective Tier-2: Alpha and Alpha-Beta screens.
>> PBW total return: 3-mos. -8.3%, 3Q24 -0.2%, 1-mo. +6.3%, 12-mos. -26.9%; YTD24 performance dispersion +204.6%/-80.8% (101824).
>> PBW Fwd adj. PE=23.9 Beta=1.6 versus 28.4/1.6, 26.8/1.6 and 24.0/1.5 sequentially [40.0 limit; N/A totals 49.9% (v. 57.4%) based on portfolio weight and 52.9% of count (-4.2%), 7.0% on market capitalization (-1.5%); Large-cap 26.1% (+5.8%), Mid-cap 38.7% (+2.3%), Small-cap 35.5% (-7.8%)].
>> SPX 12-month Fwd PE=21.4/3Q24 v. 21.2/2Q24, 20.6/1Q24, 19.2/4Q23 (FactSet); CAPE 36.7 from 35.8/34.7/32.3, mean 17.2 (Shiller).
<U/O> Matrix via Applied Indexation segments include Wind, Solar, Fuel Cells, Smart Grid, Water, LED, Biofuel, Automotive, Natural Gas, Storage and Aviation plus further classifications detailing component member assignments based on corporate business segment operations (12 segments, 61 classifications, 238 single and multi-listed component members; n=68).
Please message direct with any questions or for product development considerations; spreadsheet downloads available for research libraries at b-platform Access tab (auto-generated password; PayPal hosted).
note: w/r/t the past-positive forward looking portfolio-based relative indicators featured in <U/O> Matrix via Applied Indexation, a brief primer is provided online along with recent posts ‘Alpha, Beta, Alpha-Beta’, <U/O> Tutorial_5: Performance Dispersion (Meta) and slideshow <U/O> Matrix - Establishing Predictive Value: Applied Indexation, Hierarchical Data Sets and Competitive Market Information.
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At Venn’s intersection, sets and subsets of competing interests endure. The dynamic principles of business segment operations are three-fold: 1) multinational and Large-cap companies function as benchmark sector/industry/subindustry proxies based on scale (Alpha-Beta), 2) Small- and Mid-cap companies participate as competitive peers (Alpha) and, hence, acquisition candidates and 3) among subsets of 1) and 2) are companies provisioning multiple economic sectors, asset classes and geographies.
Successful portfolio strategies (fundamental, index-plus, systematic) and adaptive investable motifs (niche, thematic, megatrend) isolate Value in Growth, and Growth in Value, by aligning the prospective Alpha drivers directly associated with ecosystem composition and supply chain verticals.
Forward looking statements, estimates and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable but are not assured as to accuracy. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information. This content is distributed for informational purposes only and should not be considered as investing advice or a recommendation of any particular security, strategy or investment product. The author's opinions are subject to change without notice. No part of this product, related articles, publications or web-based content may be reproduced in any form or referred to in any other publication without express written permission of Universal Orbit © 2024 and David B. Kleinberg.